In-Transit Shipments Reaching UK After July 15 Likely Eligible for CETA Benefits: AEPC
With the India-UK Comprehensive Economic and Trade Agreement (CETA) taking effect on July 15, exporters are seeking clarity on whether shipments already in transit will qualify for the agreement’s preferential tariff benefits.
The concern primarily relates to goods dispatched before the implementation date but scheduled to arrive in the United Kingdom on or after July 15. Given that sea freight shipments from India to the UK often take between 35 and 40 days, many exporters are looking for guidance on eligibility criteria and the issuance of certificates of origin required to claim duty concessions.
Addressing these concerns, Apparel Export Promotion Council (AEPC) Secretary General Mithileshwar Thakur stated that consignments arriving in the UK on or after July 15 should be eligible for the benefits provided under the trade agreement.
According to Thakur, customs duties are generally assessed based on the arrival date of cargo or the filing date of the bill of entry. Since the arrival date plays a critical role in determining eligibility, shipments reaching UK ports after the agreement comes into force are expected to qualify for reduced or zero-duty treatment, provided exporters meet the necessary documentation requirements, including obtaining certificates of origin.
The India-UK CETA officially entered into force on July 15, nearly 11 months after its signing. The agreement grants duty-free access to 99 percent of Indian exports entering the UK market and is expected to provide a significant boost to labour-intensive industries such as textiles, apparel, leather, and footwear.
Under the agreement, import duties of up to 12 percent on textiles and clothing exports and up to 16 percent on leather and footwear products will be eliminated, enhancing the competitiveness of Indian manufacturers in the British market.
India exported apparel worth approximately US$1.4 billion to the UK in 2024, while home textile exports reached around US$300 million. Indian suppliers currently account for 7.1 percent of the UK’s apparel imports, valued at US$19.84 billion, and 10.5 percent of home textile imports, representing a market worth US$2.6 billion.
Industry stakeholders expect the trade pact to create new export opportunities and strengthen India’s position in the UK market across key manufacturing sectors.